Maria is the treasurer of Rex Caldwell Corporations.As treasurer,she makes out and signs the payroll checks for the company.Maria draws a payroll check payable to the order of her maid Carolyn Doss,who does not work for the company.Maria does not intend Carolyn to receive this money.She indorses Carolyn's name on the check and names herself as the indorsee.She cashes the check at a liquor store.Under which rule of forged instruments is Maria accountable?

Question

Quizplus · Accepted Answer

Maria is accountable under the fictitious payee rule. This rule holds the drawer accountable for a forged check when the check is made payable to a fictitious person or non-existing payee, and the drawer did not intend to make the payment to the named payee. In this case, Maria made the check payable to her maid, who did not work for the company, and she did not intend for her to receive the payment. Therefore, Maria is liable under the fictitious payee rule.

Maria Is the Treasurer of Rex Caldwell Corporations